Day Trading Cryptocurrency: Best Success Strategies
Cryptocurrency is the new face of the digital finance industry. Multiple coins and tokens have managed to secure a valuable space in the crypto market. Not only are they a major source of earning boatloads of money online but are also legit. Crypto trading and arbitrage are the most significant ways to invest in crypto and build assets from it.
Cryptocurrency day trading is of significant importance in the crypto space. It involves day traders that buy & sell crypto in a shorter span and generate short-term but regular profits. They keep themselves continuously engaged in trading and keep pace with the market shifts. This is how they take quick benefits by placing hundreds of orders in a row. To purchase Bitcoins, a crypto day trader must possess a minimum of 10 dollars to initiate the game.
Suitability of Crypto Day Trading
The crypto market is highly volatile in nature which favors day trading of cryptocurrencies. The value of micro-coins with high volatility might boost overnight. In this way, the trader can generate handsome revenues. However, the chances of profit and loss are always there because volatility operates similarly in both directions. To stay on the safer side, it is mandatory to adopt proper crypto day trading strategies based on real-time experience and expert guidance.
Crypto Day Trading Strategies
Before diving into the crypto world to initiate day trading, it is recommended to explore the ins and outs of the same first. In this way, the chances of failure are reduced to a considerable extent.
Here are provided the most valuable strategies in this regard. These strategies help in reducing the chances of potential risks and enable a day trader to invest money at the right time and the right place.
1) Choose Crypto Coins with High Liquidity and Volatility
Bitcoins hold maximum liquidity and volatility. Altcoins, ETH, XRP, and Celsius are also good in this regard. Whatever crypto you choose, make sure it has high liquidity and volatility.
2) Choose the best crypto trading platform
After you are done with choosing the right crypto coin, the next major step is to trade it at an ideal crypto day trading platform that’s user-friendly and high-yielding from a trader’s perspective.
3) Utilize tools to ensure precision
Tools like technical indicators, DNA scalpers, and scanners ensure maximum accuracy while trading. All the calculations, predictions, and notifications are readily provided by these tools so you don’t miss an opportunity to grab maximum profits.
4) Make a purchase when Money Flow Index hits 100
The timing of buying a stock of some specific cryptocurrency matters a lot. It depicts whether you will reap the profit or suffer from the loss. For crypto day traders, it is of utmost value to know when to invest. Therefore, it is recommended to invest in crypto when MFI is equivalent to 100.
5) Generate profit within 1 hour
It might sound strange but the experience of expert crypto day traders suggests that it is better to generate the profit within 60 minutes right after the trading process has been initiated. It ensures a more success rate. After 1 hour, the success rate might be compromised, wasting the profitability of your trade.